VistaShares has launched the BTYB exchange-traded fund (ETF), a first-of-its-kind hybrid product listed on the New York Stock Exchange (NYSE). The fund is designed to pair the stability of U.S. Treasury securities with a Bitcoin-linked income strategy, targeting enhanced weekly distributions for investors.
The BTYB ETF allocates approximately 80% of its assets to U.S. Treasury securities with maturities between three and seven years. The remaining portion is used to create synthetic Bitcoin exposure through a covered call options strategy on the iShares Bitcoin Trust (IBIT), a fund managed by BlackRock. This structure means BTYB does not hold Bitcoin directly but instead sells call options to generate regular premium income, which caps potential upside from Bitcoin price movements in exchange for steady cash flow.
The fund's active strategy aims to deliver a yield that generally targets twice the annual yield of five-year Treasury bonds, though VistaShares clarifies these distributions are not guaranteed and depend on derivatives market conditions. The ETF is positioned as a tool that merges fixed-income duration with a controlled digital-asset sensitivity and systematic risk management.
BTYB enters a growing segment of hybrid crypto investment products. This trend reflects increasing demand for adaptable ETF formats that incorporate digital assets within defined risk boundaries, moving beyond simple spot exposure. Other firms, such as Franklin Templeton and Bitwise, have also explored products combining multiple cryptocurrencies or integrating assets like precious metals.
For VistaShares, BTYB represents an expansion of its portfolio focused on active, options-driven strategies. The firm plans to introduce more products applying similar engineering to other sectors, aiming to capture investor interest in products that unite income generation with balanced exposure to evolving market themes.
